{"ok":true,"canonical_url":"https://dealroom.so/glossary/spread-over-prime","api_url":"https://dealroom.so/api/public/glossary/spread-over-prime","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-16","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"spread-over-prime","term":"Spread over Prime","aka":"lender margin","group":"The loan itself","definition":"The lender's markup on top of Prime — the only part of your rate that's negotiable. SBA caps how high it can go.","what_it_means":"Your 7(a) rate is Prime plus this spread. SBA regulation caps the spread by loan size (3.0% on loans over $350K, more on smaller loans), but lenders can and do price under the cap on strong files. This is where shopping pays off: on a $1M loan, a quarter-point lower spread is roughly $125 a month. Ask two or three lenders for their spread in writing and let them compete.","url":"https://dealroom.so/glossary/spread-over-prime","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"wsj-prime-rate","term":"WSJ Prime rate","url":"https://dealroom.so/glossary/wsj-prime-rate"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"plp-lender","term":"PLP lender","url":"https://dealroom.so/glossary/plp-lender"}],"related_questions":[{"question":"What is the maximum interest rate spread a lender can add over the base rate for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-maximum-interest-rate-spread-a-lender-can-add-over-the-base-rate-for-an-sba-7-"},{"question":"What is the difference between the base rate and the spread on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-between-the-base-rate-and-the-spread-on-an-sba-7-a-loan"},{"question":"What are the maximum allowable interest rates for variable rate 7(a) loans, including the permissible spread?","url":"https://dealroom.so/for-lenders/questions/what-are-the-maximum-allowable-interest-rates-for-variable-rate-7-a-loans-including-the-pe"},{"question":"Does my business need to show consistent revenue over several years?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-show-consistent-revenue-over-several-years"},{"question":"What is the 'Prime Rate' when talking about SBA 7(a) loan rates?","url":"https://dealroom.so/sba-loans/basics/what-is-the-prime-rate-when-talking-about-sba-7-a-loan-rates"},{"question":"What is the difference between Prime Rate and an SBA 7(a) loan rate?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-between-prime-rate-and-an-sba-7-a-loan-rate"}],"related_tool":{"label":"Find an SBA lender","url":"https://dealroom.so/lenders/best"}},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Spread over Prime","url":"https://dealroom.so/glossary/spread-over-prime","source_type":"DealRoom Data"}}